Thai bonds and fixed deposit

[EricTh]

What's the difference between Thai bonds and fixed deposit?

 

Where can I purchase Thai bond?

[KhonKaenKowboy]

Bonds cannot be used for proof of funds..800k....bonds care issued by the government but can lose value, and in some cases become worthless.  FD is like a CD in the US..it is a bank certification of your deposit, which is guaranteed by the government in the case of bank failure.

[simoh1490]

A bond is uninsured debt that has been issued by a bank or a company and the principle may not always be repaid, interest rates on bonds vary according to the quality of the debt and the bond market. A fixed deposit is insured under the DPA protection scheme and failing some major catastrophe, is more or less always going to be repaid, the interest rate on a fixed rate deposit is determined by the gilts market, futures market and/or the economic outlook.

 

Bonds are available from any broker, investment house or bank.

Edited April 2, 2017 by simoh1490

[KhonKaenKowboy]

There are corporate bonds and government bonds...

[EricTh]

On 4/2/2017 at 5:26 PM, KhonKaenKowboy said:

There are corporate bonds and government bonds...

You mean government bonds don't guarantee the principal value?

 

Are there any 3 months or 6 months govt bonds?

[Dante99]

No issurer of bonds guarantees payment of the principal value.

 

Highly recommend you read something more comprehensive to learn about bonds.  This is not the place really.

[KhonKaenKowboy]

Google government bond defaults.....it has happened....Argentina for one, but quite rare.  It is common for them to lose value, but unlikely that you would lose principal unless you sold before the term completed.  Bangkok Bank has bond funds that I have actually bought with a tourist visa, but yields are so low; it isn't worth the effort, currently, .you can buy them for 6 or 12 month terms.  

[Dante99]

Perhaps you do not often loose principal but you do loose purchasing power when your principal is returned in a currency that has lost value.  That is a favorite way for governments to pay their debt using a lower value currency.